Dec 13 (Reuters) - German chemicals maker Evonik

aims to slim down its business by starting the biggest

restructuring programme in its history, the company said on

Friday, potentially reducing its workforce by more than a fifth.

The group, based in Germany's industrial heartland, could

spin off activities at its Marl and Wesseling sites with a

combined 3,600 employees, CEO Christian Kullmann said, adding

these assets could be transferred into joint ventures or sold.

In total, and including sales programmes already underway,

Evonik could eventually shed around 7,000 of its 32,000 jobs.

Germany's chemical industry suffered heavily throughout 2023

due to high production costs and weak demand amid rising

inflation. Initial signs of recovery early this year have faded

away.

Evonik still expects to increase its operating profit this

year.

The company, which makes chemicals used in products from

animal feed to Pfizer ( PFE ) and BioNTech's COVID vaccine, had in March

announced up to 2,000 job cuts by 2026 with the goal of reducing

costs by 400 million euros ($437 million) annually.

Evonik on Friday also announced a restructuring of its

business lines into two segments. It will focus on its core

operating businesses Custom Solutions and Advanced Technologies.

The Custom Solutions segment includes additives for paints

and coatings, as well as products for the cosmetics and

pharmaceutical industries. Its Advanced Technologies segment

focuses on high-performance polymers and hydrogen peroxide

production.

By the end of 2026, Evonik plans to reduce the number of

management levels from an average of 10 to a maximum of six

across the group, it added.

(Reporting by Inverardi Matthias, Anastasiia Kozlova and Amir

Orusov, editing by Friederike Heine and Thomas Seythal)